Elon Musk tries again to escape FTC audits of X data handling

Elon Musk faces renewed challenges as critics rally to uphold a stringent data privacy order imposed by the Federal Trade Commission (FTC) just before he assumed control of Twitter. This order enforces strict limitations on X's data usage for a period of 20 years, mandates regular independent audits, and grants the FTC the authority to request vital documents to ensure compliance. The FTC's intervention stemmed from a significant incident involving Twitter, which revealed that a coding error had inadvertently allowed phone numbers and email addresses shared for two-factor authentication to be used for targeted advertising. This revelation led to a settlement in which Twitter agreed to pay $150 million and submit to FTC oversight of its data-handling practices until 2042, all in a bid to safeguard user privacy. In 2023, Musk attempted to overturn this order but was unsuccessful. He accused the FTC of ramping up investigative demands, arguing that the order was unjust and should be rescinded due to alleged bias within the agency. However, the FTC countered that Musk's acquisition of Twitter raised legitimate concerns about the company's capacity to adhere to the order, particularly after he dismissed key personnel who had been responsible for ensuring compliance. Testimonies revealed that significant layoffs and cost-cutting measures had compromised X's ability to implement necessary technical safeguards regarding the handling of user contact data. The agency highlighted that around 37% of the privacy control measures at X Corp. lacked designated oversight. Furthermore, the FTC expressed concern over Musk's requests for journalists to access internal systems for the so-called "Twitter Files" and noted a text where Musk pressured an executive assistant for immediate access to systems, warning that anyone obstructing this request would face termination. In 2024, the agency reported that X's security staff had occasionally defied Musk's orders to maintain compliance with the privacy order. As Twitter's performance became inconsistent due to extensive layoffs, the FTC asserted it had valid reasons to investigate whether these changes indicated potential lapses in X Corp.'s adherence to privacy regulations.